India’s textile boom ahead? Why Jefferies is bullish on Welspun, Raymond

Jefferies has upgraded Welspun Living from Hold to Buy and more than doubled its price target, while initiating coverage on Raymond Lifestyle with a Buy rating, noting that free-trade agreements and the China+1 sourcing shift will drive a multi-year growth cycle for Indian textile exporters.

The brokerage raised its target price for Welspun Living by 108%, from Rs 125 to Rs 260, implying an upside potential of 25%. It initiated coverage on Raymond Lifestyle with a target of Rs 900, indicating a potential gain of 29%.

FTAs to improve India’s competitiveness

Jefferies said India’s textile industry was entering a structural growth cycle as global companies diversified sourcing beyond China and trade agreements improved domestic manufacturers’ competitiveness. While the global textile and apparel market exceeds $900 billion, India has an export base of about $37 billion and accounts for only 4% of global textile and apparel exports and 3% of apparel exports, leaving significant scope for market-share gains.


The India-UK free-trade agreement, effective from July 2026, has reduced tariffs of 4-12% on Indian textile products to nearly zero, while a potential agreement with the European Union from 2027 could remove similar duties and provide preferential access to an import market worth around $220 billion.

Welspun Living: Margin recovery in focus

Jefferies expects Welspun Living’s revenue to grow at a compound annual rate of 14% between FY26 and FY29. EBITDA and profit are projected to register CAGRs of 38% and 71%, respectively, as demand improves and operating margins recover.

The brokerage expects Welspun’s EBITDA margin to rise from 8.4% in FY26 to nearly 15% by FY29, while its return on capital employed could improve from 6% to around 19%.

Welspun is one of the world’s largest home-textile suppliers, with products across bed linen, towels, rugs, carpets, flooring and advanced textiles. Its scale, integrated manufacturing operations and relationships with global retailers such as Walmart, Target and Costco give it an advantage as sourcing shifts away from China, Jefferies said.

The brokerage also sees growth opportunities in the UK and Europe, where India’s share of home-textile imports remains relatively low. The removal of import duties could allow Welspun to compete more effectively with suppliers from Pakistan, Bangladesh and Vietnam.

Raymond Lifestyle: Turnaround opportunity

For Raymond Lifestyle, Jefferies expects revenue and profit to grow at CAGRs of 9% and 23%, respectively, over FY26-29.

The brokerage believes the company offers a combination of stability from its branded-textiles business and growth potential from the turnaround of its apparel operations and expansion of garment exports.

Jefferies expects store rationalisation, premiumisation, improved retail productivity and expansion into casual and ethnic wear to support a recovery in this business.

Garmenting is expected to be a key growth driver, with Jefferies forecasting an 18% revenue CAGR over FY26-29. The segment expects the company’s exports to benefit from new customers, improving capacity utilisation and better access to the UK and European markets.

Disclaimer: This article has been written by Somanjali Das, who is not a SEBI-registered Research Analyst or an Investment Adviser. Somanjali Das and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.

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